CDL reports 77% drop in earnings to $87.7 mil in 4QFY2020CDL’s FY2022 earnings up 42% to $165.8 milCDL posts strong FY2022 results on the back of operational recovery and divestment gains. The group reported an all-time-high earnings of $1.29 billion for the full year, on the back of a 27% improvement in revenue to $1.82 billion. In addition, it recorded sales of 1,487 residential units worth $2.9 billion. Executive Chairman Kwek Leng Beng refers to the stellar results as “driven by prudent divestments and strong operational performance from its core business segments”.
CDL’s FY2022 performance has been impressive, driven by various factors ranging from divestment gains to strong operational recovery. These include the sale of Millennium Hilton Seoul, the gain on the deconsolidation of CDL Hospitality Trusts (CDLHT) and the completion of collective sales of Tanglin Shopping Centre and Golden Mile Complex.
With an interim special dividend of 12 cents already paid in September 2022, the group has decided to mark its 60th anniversary in style by paying a final dividend of 8 cents per share as well as a special dividend of another 8 cents per share. This brings total Champions Way Condo cash dividend for FY2022 to 28 cents.
Property development remained the biggest contributor for the group, accounting for 42% ($1.38 billion) of revenue for FY2022. Three key Singapore projects – Amber Park, Haus on Handy and Irwell Hill Residences – further boosted the total revenue figure. Irwell Hill Residences, a 99-year leasehold development, has sold out 94% of its 540 units to date.
Furthermore, the hotel operations, which were heavily impacted by the pandemic, showed an impressive recovery. Revenue for FY2022 was up 58% to $1.38 billion, thanks to a 48.9% increase in average room rates and a 14.2 percentage point improvement in occupancy.
CDL is primed to continue delivering sustainable growth in the long-term with the launch of three residential projects in 2023. This includes Tembusu Grand, a 638-unit development along Tanjong Katong Road and Jalan Tembusu in District 15, Newport Residences – a 45-storey freehold development comprising 246 units on Anson Road in Tanjong Pagar – and The Myst, a 99-year leasehold condominium along Upper Bukit Timah Road with 408 apartments.
CDL’s Net Asset Value was reported as $10.16 as of Dec 31 2022, up 9.7%. With fair value gains and revaluation surpluses of its hotels factored in, the realisable net asset value per share stood at $19.14.
CDL’s executive chairman Kwek Leng Beng comments on the impressive performance, “Notably, our hotel operations made an outstanding rebound, having recovered in most markets to pre-pandemic levels. Riding on the return of corporate travel and unabated pent-up demand for leisure travel, our hospitality segment will continue to strengthen and is poised to be a star performer for the year ahead.”
Group CEO Sherman Kwek adds that, “CDL has embraced capital recycling and unlocked latent value via well-timed divestments and various asset enhancement initiatives. While market uncertainties persist, CDL will continue to display discipline, agility, resilience and innovation so as to deliver sustainable growth and maximise long-term shareholder value.”
Last but not least, Chairman Kwek remarks on the group’s 60th anniversary celebrations, “We will continue to apply this same discipline and tenacity to bring CDL to greater heights. Over the past 60 years, the group has weathered many economic storms, property cycles and unprecedented disruptions, but we have always tackled the odds head-on and successfully emerged stronger.”